The effect of payscale caps on Marine Mustang Officers and retirement

Abstract

This research analyzed prior enlisted Marine Officer Retention and their relationship to military paycaps. An analysis of the data showed that retention behavior of prior-enlisted Marine Officers differs from non-prior Marine Officers. Prior-enlisted Marine Officers are more likely to remain on active duty after their initial service obligation and serve a full career in the Marine Corps than Marine Officers with no previous military experience. Prior-enlisted service has a positive effect on retention to 20 YOS. A Marine Officer with sufficient time in service stops receiving longevity pay, and experiences the phenomenon known as pay compression. The lack of pay raises for six years or longer may be a disincentive to continued service, although prior-enlisted Marine Officers have higher retention rates than non-priors at every stage of their careers. The results of this study suggests that Mustang or prior-enlisted Marine Officers with at least 8 years of prior service retire at a higher rate than regular officers after 20 YOS.